Professional Documents
Culture Documents
Contents
1 Executive Summary.......................................................................................................................... 6
1.1 Background ......................................................................................................................... 7
1.2 Recommendation................................................................................................................ 8
2 Overview .......................................................................................................................................... 9
2.1 The Need for Integrated Business Processes and Systems................................................. 9
2.2 Business Capabilities ......................................................................................................... 10
2.3 Objectives ......................................................................................................................... 11
2.4 Structure and Governance ................................................................................................ 12
3 Approach ........................................................................................................................................ 13
3.1 Complete Requirements ................................................................................................... 14
3.2 Peer Research and Vendor Sessions ................................................................................. 14
3.2.1 Peer Institution Phone Interviews ....................................................................... 14
3.2.2 Vendor Session Plan............................................................................................. 17
3.2.3 Cost Data .............................................................................................................. 18
3.3 Risk Assessment ................................................................................................................ 20
3.4 Policy Issues ...................................................................................................................... 21
3.4.1 Escalation ............................................................................................................. 22
3.4.2 Position Papers .................................................................................................... 22
3.5 Evaluate Solutions............................................................................................................. 23
3.6 Assess Technical Foundation ............................................................................................ 24
3.6.1 Strategic Roadmap for Information Management and Administrative Systems 25
3.6.2 Enterprise Architecture Guiding Principles.......................................................... 25
4 Major Options Considered ............................................................................................................. 26
4.1 Business Model 1 – Custom-Developed Software ............................................................ 27
4.2 Business Model 2 – Consortium-Developed Software ..................................................... 27
4.3 Business Model 3 – Licensed Commercial Software Solutions......................................... 27
4.4 Business Model 4 – Subscription-based Managed Solutions ........................................... 28
4.4.1 Commercial Software, Hosted and Managed by the Vendor or a Third Party .... 28
4.4.2 Software as a Service (SaaS) ................................................................................ 29
4.4.3 Outsourced Solution ............................................................................................ 29
4.4.4 Traditional Outsourced Solutions vs. SaaS .......................................................... 29
Figures
Figure 1: High-level, Integrated Approach to HR/Payroll .......................................................................... 10
Figure 2: HR-Payroll Capability Decomposition ......................................................................................... 11
Figure 3: HR/Payroll Feasibility Study Timeline and Approach .................................................................. 13
Figure 4: Overview of Developing Requirements ...................................................................................... 14
Figure 5: Vendor Sessions .......................................................................................................................... 17
Figure 6: Cost Range by Model .................................................................................................................. 19
Figure 7: Estimated Ten Year Cumulative Expense by Model.................................................................... 20
Figure 8: Business Model Solutions and Solution Providers ...................................................................... 23
Figure 9: Technical Requirements Capabilities .......................................................................................... 24
Figure 10: Business Models and Vendors .................................................................................................. 26
Figure 11: Remaining Business Models and Deployment Options ............................................................ 36
Figure 12: Procurement Strategy ............................................................................................................... 45
Figure 13: High-level Timeframe for HR/Payroll System Replacement Project ......................................... 56
Figure 14: Existing HR/Payroll System on-a-Page ...................................................................................... 57
Figure 15: Gartner Rating Scale and Interpretation................................................................................... 59
Figure 16: Gartner Cultural Readiness Rating ............................................................................................ 59
Figure 17: Gartner Resrouce & Effort Awareness Rating........................................................................... 59
Figure 18: Gartner Project Readiness Rating ............................................................................................. 60
Tables
Table 1: Comparison of Revenue Sources and Workforce 1982 and 2011 ................................................. 6
Table 2: Regulatory and Compliance Comparison - 1982 and 2011 ............................................................ 7
Table 3: Peer Research Interview List ........................................................................................................ 15
Table 4: Peer Interviews - Side-by-Side Comparison ................................................................................. 16
Table 5: Vendor Feedback Summary ......................................................................................................... 18
Table 6: Cost Questionnaire ....................................................................................................................... 19
Table 7: Enterprise Architecture Group Guiding Principles ....................................................................... 25
1 Executive Summary
The University of Washington needs to implement a modern HR/Payroll (HR/P) system.
UW’s existing payroll-based, workforce management systems are incomplete, inflexible, and not able to
meet the current and future needs of the institution. Implementing a comprehensive, flexible HR/Payroll
system will enable the University to move forward with business process improvement while creating an
environment that supports consistency, compliance, efficiency, and effectiveness.
The UW currently processes its payroll using a customized mainframe payroll system, Higher Education
Payroll Personnel System (HEPPS). HEPPS was implemented in May 1982 at a time when the size and
nature of the University’s enterprise, workforce, operating environment, and business needs were very
different. Table 1 illustrates the growth in size and complexity of the University.
Table 1: Comparison of Revenue Sources and Workforce 1982 and 2011
1982 2011
In addition to payroll processing, the UW currently uses HEPPS and related systems to collect and
interact with available workforce data (e.g., dates of employment, time and leave information, salary
and benefit information) for the University’s 40,000 employees. This highly customized package has
assisted the University’s modernization and development for a generation. However, the University’s
HEPPS implementation and its data design have limitations that have not allowed the University to keep
up with changes in the business and regulatory environment.
Table 2 illustrates fundamental changes between 1982 and 2011 in just three areas of compliance:
collective bargaining agreements, multi-state and international operations, and state and federal
regulations.
1 This number excludes hourly paid employees. Perhaps a more telling number for 2011 is the number of W2s printed, 50,917.
1982 2011
Scope of bargaining Prohibited from negotiating salary, Civil Service Reform opened the
agreements: hours of work, overtime, premium scope of bargaining to include all
pays, leave, corrective action, of these areas
performance management
Regulatory and Federal, state, and HEPPS was implemented to be Over 30 major federal regulatory
Compliance hospital compliant for the time, but lacks programs and requirements,
Profile requirements and the flexibility to keep up with numerouse changes to state and
regulations: change hospital rules & regulations,
including: ADA, FMLA, COBRA,
FLSA for state employers, new
state retirement and insurance
eligibility rules, extension of
bargaining rights to temporary
employees, new Joint Commision
rules, etc.
1.1 Background
Furthermore, HEPPS is a payroll system not a human resources management system (HRMS).
Because the basic data design of HEPPS is centered on point-in-time payroll processing and labor
distributions rather than people management, there is no access to person-level information required to
function as or integrate with a modern workforce management system. In the current environment we
cannot provide information about the nature of our workforce, only about what individuals were
paid. A modern HR system is designed to enable an employer to plan, manage, and analyze the
organization’s intake, classification, staffing, orientation, compensation and benefits administration,
performance management, and employee and labor relations.
The HRP Replacement Project Team2 – in collaboration with Executive Sponsors3, Executive Advisors4,
and a Core Team5 of stakeholders – has developed business goals and requirements that reflect the
current and anticipated needs of the University. In addition, team members have researched leading
vendor solutions and consulted with peer institutions about their experiences implementing new HRP
systems.
At different points in the Feasibility Study project, the University reviewed and assessed the business
and deployment models to determine what models, if any, could be removed from consideration. The
assessment took into account the University’s business goals, complexity, and implementation timeline.
Information collected through the informal vendor questionnaires and system demonstrations was also
used in the assessment. Additionally, the University looked for opportunities to partner with other
agencies.
Based on the extensive research and discussions with peer institutions and leading vendors, the team
has narrowed the implementation focus on specific business models and deployment options:
Subscription-based, managed solution – Outsourced system
Subscription-based, managed solution – SaaS
Subscription-based, managed solution – Hosted and managed by a vendor or third party
Licensed Commercial software – Hosted by vendor or third party
The UW has defined the requirements for a new system and plans to issue an RFP. The University will
consider all viable options, including SAP, Oracle, Workday, ADP, Lawson, and other solutions being used
or implemented in large, higher education institutions and medical centers.
1.2 Recommendation
The recommended next step is to issue an RFP to procure a university-wide solution for payroll and
human resource management, which will serve faculty and staff student employees.
After the RFP has been approved by the Office of Financial Management and the Office of the Chief
Information Officer (OCIO), it will be published and the UW will move into the Procurement phase.
Concurrent with the procurement stage will be a Business Process Redesign project working under a
separate charter.
2 Overview
The University of Washington (UW) is one of the largest employers in the state of Washington. It has a
large, complex, and diverse workforce of 40,000 people including faculty, staff, and student employees
who support the University’s core mission in the areas of teaching, research and service. The
University’s total payroll for 2011 was approximately $2.2 billion6.
The University includes UW Medicine, which owns or operates Harborview Medical Center, University of
Washington Medical Center, Northwest Hospital & Medical Center, Valley Medical Center, a network of
UW Medicine Neighborhood Clinic, the UW School of Medicine, UW Physicians, and Airlift Northwest.
University has approximately 16,000 contract classified employees in 24 bargaining units. Union
employees represent a wide variety of job classifications, among them: Registered Nurses, Technical
employees, Skilled Trades, Police Officers, Service employees, Administrative/Clerical/Laboratory
employees, and Academic Student employees.
There are complex cost allocation rules, including tracking staff costs to specific funds and grants.
Additionally, there are more operational cost accounting needs in the UW Medicine and operational
support units on campus.
And yet in spite of the size and complexity of the institution, the UW operates using a 29+ year old
payroll system and without a centralized human resource management system (HRMS), as illustrated in
Appendix D: Existing UW HR/Payroll Systems on-a-Page. The payroll system contains minimal human
resource data. The lack of a system to support workforce management has resulted in departments
developing their own solutions (aka “shadow systems”) to meet their day-to-day HR management
needs. The shadow systems are inherently inefficient, have limited integration, and no assurance of data
integrity, consistency, or security. An integrated HR/Payroll system is needed to meet the requirements
of an increasingly complex regulatory and labor environment, to enable efficient and effective payroll
and staff management, and to provide university managers and employees with information needed to
fulfill their responsibilities and maximize the value of their university experience.
2.3 Objectives
The University plans to replace the existing payroll system with an integrated HR/Payroll system
composed of a set of applications that address the business needs of the enterprise as outlined in Figure
2 and listed in Appendix A: Capabilities and Attributes. To help guide the conduct of the Feasibility
Study and subsequent RFP and selection process, the Executive Sponsors identified and prioritized the
following critical business objectives:
Reduce risk of aging, fragile, non-existent, obsolete and non-supportable systems by
modernizing systems and performing required technology renewal
Improve regulatory compliance by implementing systems that are compliant with federal and
state regulations, and are upgraded by the vendor to maintain compliance over time
Improve integration and information available for decision-making and planning
Reduce number of duplicative shadow systems by providing a more robust set of business
applications
Provide comprehensive business continuity/disaster recovery plans for payroll and human
resources
Provide a flexible, scalable, resilient, and sustainable infrastructure environment
Enhance business processes and efficiency by implementing best practices where practical
Streamline business process integration between the departments, campuses, medical centers,
and UW administration services
3 Approach
The Feasibility Study was initiated in late 2010. It consists of a series of complementary tasks discussed
in this section. The tasks include:
Complete requirements
Conduct peer research and vendor sessions
Assess risk
Assess policy issues
Assess solutions
Assess technical foundation
Develop the Request for Proposal (RFP)
Figure 3 presents the feasibility study tasks in a timeline format.
8 Educause also provided research material. See Appendix G: Educause Peer Institution Payroll Systems for details.
U of Wisconsin – Madison Homegrown 1989, updating to System of schools & Medical Center
Oracle PeopleSoft
The working team created a questionnaire that was used during each phone interview. The questions
covered topics such as:
Size and organizational complexity of the institution being interviewed.
Whether the institution has a medical center. If so, the interviewer asked a series of questions
about the degree of integration of the academic and medical center in payroll, benefits, and
compensation.
The institution’s software implementation
Satisfaction with the vendor, the system, cost, and overall experience, including problems and
their resolutions
Experience with vendor support, including implementing system upgrades
Implementation costs, including personnel and other expenses
Issues pertaining to position management, labor distribution, integration with other systems,
and so forth
See Appendix H: Phone Interview Questionnaire for the full questionnaire.
Preliminary fact-finding efforts focused on the eleven institutions listed in Table 3. As a result of the
phone interviews, the initial list was pared down to institutions with which the University of Washington
shared a major characteristic, such as size or institutional complexity. The first analysis also eliminated
institutions that use a system written in-house. Table 4 is a sample comparison of interview information
with three peer institutions, University of Cincinnati, Georgia State, and the University of Michigan.
Table 4: Peer Interviews - Side-by-Side Comparison
Implementation: 18 month, Big Bang 18 month, Big Bang 2 years, Big Bang Recommendation
Pending
Sequence Finance, HR, Student NA Finance, Student, HR
Medical Center Separate Payroll and NA Same Benefits and Same Benefits and
Benefits from Payroll as University Payroll as University
University
Decision Driver / Finance already SAP, Consultant Finance & Student TBD
Process RFP recommended, RFP already PeopleSoft,
RFP
Boiler Plate Vendor Intro/Overview (45 min) Cost Questionnaire* Narrow Business
•Agenda •UW Metrics Models Based on:
•Biz Demo Scenarios Functional Demo Scenarios (2 hrs) •Cost
•Tech Demo Scenarios •Onboard to Promote Vendor Questions •Vendor Questions
•HRP On-a-page •Timesheet to Payday (Interview Summary) •Demos
•HRP Scope Breakdown •Self Service (Employee/Manager) •Business/General/Tech •Functionality
•Functionality Fit/Gap Increase Knowledge
Vendor Questions* Technical Demo Scenarios (1.5 hrs)
•Business/General/Tech •Show & Tell •What’s out there?
Demo Results
•Functionality Fit/Gap •Interfaces •Look and Feel
•Functional
•Configuration Management •Technical Inform
Vendor Packet sent as a Implementation
single Word Document. Plan to invite 5 vendors over 3 weeks Results may facilitate
(2 sessions/week) voting to narrow business
Options
*Project Team conducted models.
phone interviews with •ADP
Vendors to discuss questions •Lawson * Cost Questionnaire with
in the packet prior to •Oracle UW Metrics sent to Inform RFP
Session. Project Team •SAP Vendors after the Sessions,
reviewed answers and •Workday then collected for review
flagged anything needing during evaluation.
review during sessions.
The vendor sessions highlighted the following broad themes for success:
Category Feedback
Company & Experience Limited experience and knowledge of higher education – ADP, Lawson
Question Description
Identify [from a list] and describe the deployment model for which you are providing an
1
estimate.
Provide estimates of implementation and ongoing costs (annual TCO) with the data
2 separated into core HRP functionality and non-core HRP functionality. Provide both the low
and high end of the cost range.
Describe which functionality is core and which is non-core. What drives the cost to the
3
lower or higher end of the range?
Provide estimates of the amount of time it will take to implement the functionality. What
4
drives the time estimate to the lower and higher end of the range?
List opportunities for potential savings and ROI projections you think will result from
5
replacing our legacy systems.
Figure 6 is a high-low cost range analysis by vendor. The questionnaire was part of an informal vendor
research effort that requested range (low-high) information. This figure shows ranges for vendors by
deployment model.
Figure 7 illustrates the projected, estimated cumulative expense over ten years for SaaS and Hosted
models only. The information provided by the vendors is in line with the budget estimates developed in
collaboration with the Office of Planning and Budgeting.
Note: The data in Figure 7 is a combination of vendor estimates summarized in Figure 6 and
assumptions about costs to the UW for internal support. The latter component was
Based on cost questionnaire responses, the Core Team determined that no business model fell outside
the University’s planned estimated price range.
In summary, the risks associated with the continued use of an aging and highly customized mainframe
system are significant. They include the following:
The HEPPS payroll system was designed in the 1970s when the business environment and
expectations were very different than they are now; for example, 24x7 availability and web
access.
The common use of shadow systems throughout the institution creates data integrity and data
security risks.
The rapidly changing business and regulatory environments require that systems be much more
flexible to meet critical requirements in such areas as:
o FLSA regulations that govern overtime and regular pay
o Labor contract provisions, such as those regarding union dues deductions, pay
provisions, and leave benefits
o Employee leave entitlements and recordkeeping requirements set forth in federal and
state regulations; for example, Family Medical Leave Act (FMLA), and Family Care Leave,
respectively
o Time collection, record keeping, and reporting
o Benefits administration, including eligibility determination and calculation of
compensation-based benefit deductions, such as insurance premium deductions,
Flexible Spending Accounts (FSA), and Dependent Care Assistance Program (DCAP)
o Business continuity and disaster recovery
o Tracking completion of mandatory trainings and renewal and expiration of required
certifications
o Administration of involuntary payroll deductions, such as child support or tax levies
o Tracking work authorizations such as I9 forms, eVerify results, and so forth
The legacy HEPPS system is written in COBOL, a language that is no longer widely taught in the
United States. Most COBOL programmers are nearing retirement.
3.4.1 Escalation
The Core Team can resolve many issues on its own without escalating to the Executive Sponsors.
Sometimes, however, the Core Team may decide an issue does require escalation to the Executive
Sponsors. These issues are usually ones that would impact the scope of the process or implementation
of the new system. Any issue that requires Executive Sponsor support or approval is assigned to a single
owner on the Executive Sponsor team who is responsible for resolving and signing off the final decision
or approach associated with the issue.
The vendor marketplace was assessed in terms of core and niche solutions. Core solutions were
categorized as solutions encompassing basic, integrated human resource and payroll management
features, such as employee records, job descriptions, personnel actions and management, position
management, payroll, HR compliance, compensation management, benefits administration, manager
self-service, and employee self-service9. This marketplace is considered both mature and innovative.
Niche solutions provide an application or suite of applications that address a specified need or function,
such as time and attendance, recruiting and application management, learning management, or
performance management. This market is less mature with considerable change and “churn” in the
marketplace. Some core solution vendors bundle and re-sell third-party niche solutions with some
degree of integration.
9 Of the features listed, only personnel actions, payroll, and employee self-service are parts of UW’s current system.
To assist in evaluating business models, deployment models, and needs, an HR-Payroll Capability
Decomposition business model was created. It outlines key business functions, as illustrated in Figure 2.
Principle Description
Strategic UW has a single, federated enterprise-wide architecture that is closely aligned with
UW’s mission, vision, and values. Take a big picture viewpoint when making decisions.
Don’t sub-optimize based on immediate project goals.
Governed Data Data is a critical UW asset that must be governed according to UW Policies. Data has a
single source of truth enriched by robust metadata.
Secure Understand the security classification of the system’s information and design
accordingly. Secure the boundaries between architectural components. Consider both
malicious and accidental misuse. Manage risk.
Simple Systems and components should be as simple as possible but no simpler, following
well-defined patterns and blueprints. Duplicate as little as possible.
Standard Embrace standards where they exist. Prefer standard, open architected systems over
proprietary solutions. Reduce needless diversity and complexity.
Maintainable Consider the system’s full lifecycle and design its components to be maintainable
throughout their lifecycle. Design for extensibility. Components must be testable. An
undocumented system is not maintainable.
Reliable A system is only as reliable as its weakest link. Design components to avoid single
points of failure. Define availability targets and design accordingly.
Deployment options Six categories of deployment options were considered: on-premise; hosted by
vendor or third party; hosted and managed by vendor or third-party; software
as a service; and outsourced11. Some business models offer multiple
deployment options.
Vendors The bar graph under the business model diagram indicates the major vendors in
each space. Some of the vendors have offerings in more than one business
model and/or deployment space.
11There are different types of outsourced deployment models based on what is outsourced: hardware and infrastructure,
applications, business processes (BPO), customer service, and so forth.
The following topics look more deeply at each of the business models. Section 4.6 discusses the pros and
cons of the deployment option and the decision by the Core Team and Executive Sponsors to eliminate
the on-premise deployment option.
12Cloud computing is computing delivered as a service. Shared resources, software, and information are provided over a
network, typically the Internet.
4.4.1 Commercial Software, Hosted and Managed by the Vendor or a Third Party
The first deployment option is commercial software implemented, hosted, managed, operated and
maintained by the software vendor and/or a third party. In most cases, multiple vendors are involved in
providing the total solution – e.g., the software provider, the hosting vendor, and the application
managed service (AMS) provider. UW pays the provider or providers for services on a subscription basis.
Examples of commercial software providers of large scale HR/Payroll systems include:
Lawson, managed by Lawson or a third party
Oracle, eBusiness Suite, managed by Oracle OnDemand, or a provider such as Accenture,
CapGemini, CSC, Fujitsu, or IBM
Oracle, PeopleSoft managed by Oracle OnDemand, or a provider such as Accenture, CapGemini,
CSC, Fujitsu, or IBM
SAP, managed by a provider such as Accenture, ACS, CGI, CSC, or IBM
14SAP provides a SaaS solution called Business By Design for small businesses, but does not currently provide an enterprise
SaaS solution.
Large outsource providers typically offer a broad range of business process outsourcing services
in addition to system outsourcing.
SaaS software typically uses more up-to-date technologies, and data exchange and integration
standards.
Business process outsourcing projects are not IT projects and should be directed and managed by
business leaders. IT managers and staff play a supporting role primarily in the areas of data conversion
to the outsourcer and managing data transfers for data warehouse reporting.
Examples of large enterprise HR/Payroll business process outsource providers include: Accenture, ACS
(Xerox), ADP, Ceridian, Convergsys, Hewitt, IBM, Logica, and NorthgateArinso.
Custom Creating a custom solution reproduces the current environment, including all of the
Developed weaknesses of the on-premise deployment solution, as discussed in Section 4.1. It
Software shifts compliance, business resumption, and cost overrun risks to the university, adds
complexity to the procurement process, and is the least aligned solution in terms of
the business goals discussed in Section 2.3 and the UW Strategic Roadmap.
Business Process Business process outsourcing is a fully outsourced solution. It was eliminated
Outsourced because it cannot handle the complexities of UW, the medical centers, and research
Solution units, which all require localized knowledge and processes.
Consortium- The consortium business model was eliminated early in the Feasibility Study. The
Developed higher-education consortium provider, Kuali Foundation, is in the early stages of
Software developing an HRP solution. However, their timeline did not mesh with the time
constraints of the UW HRP project.
Licensed In May 2011, the Core Team, Advisors, and Issue Owners met to discuss the
Commercial possibility of removing the on-premise deployment option from consideration. Of
Software the various business models, the on-premise model is the least aligned with the
Solutions - On UW’s business goals (see Table 3 below) and the most likely to result in a
Premise continuation of the UW’s current approach toward customized software and
Deployment business processes. One of the dangers of an on premise model is inadequate or un-
sustained funding for system maintenance and upgrades. The UW is more likely to
stay current with the software using the SaaS or outsourced models.
Table 8 was compiled using information from the peer research and vendor sessions described in
Section 3.2. The table highlights the trade-offs in terms of business goals and associated risks for the
remaining deployment models. It was an instrumental factor in the decision to eliminate the on-premise
deployment model. Scanning down the COTS On-premise column highlights the option’s mismatch with
the stated business goals.
Tax-related risks X X √ √ √
BUSINESS GOAL 3: Improve integration and information available for decision making and planning
BUSINESS GOAL 4: Cost and maintenance of business continuity/disaster recovery plans for payroll and HR
BUSINESS GOAL 5: Implement the most cost effective solution to meet the business needs
BUSINESS GOAL 6: Reduce risk of aging, non-existent, obsolete and non-supportable systems
Modernize systems √ √ √ √ √
BUSINESS GOAL 9: Provide flexible, scalable, resilient and sustainable infrastructure environment
Deployment options will be a consideration in the RFP evaluations. Trade-offs and approaches for
reducing and managing risks will be assessed in the final selection and contract. Business Goal 12 and
its associated risks will be addressed and minimized through contract terms and conditions (such as
indemnification) and the new UW procedures and practices to manage the implemented solutions.
6 Impacts
Impacts to the greater UW community will be felt not just from the implementation of a new HR/Payroll
system, but also from widespread changes throughout the institution, which will be required to support
the new system. For example, many currently decentralized and highly variable business processes will
be automated and standardized across units, which will change how people work and the duties of their
jobs. Table 9 describes change drivers across the university community.
Table 9: Change Drivers and Anticipated Impacts
Automation of business Moving business from paper-based processes that are supported by
processes multiple, non-centralized systems to a highly automated, central system will
results in visibility into and efficient control of business processes.
Automation will also eliminate double-entry inefficiencies and increase data
accuracy.
Anticipated Impacts:
Use of automated triggers and alerts in a modern system will reduce
the amount of time it takes to correct errors and move business
processes along a path to completion.
Some actions – such as time entry for campus employees – may
require employees whose duties do not currently require computer
access to be provided with computer availability.
Users may need to reorganize and/or change their work to fit the
new system.
Information for decision Centralized systems will enhance the quality and uniformity of data. These
making; access to improvements will enhance and support business intelligence.
quality analytical data
Anticipated Impacts:
Accurate and timely analysis.
Reduce data collection and manipulation time.
Reduce shadow systems.
Consistent and accurate Data quality is highly dependent on consistent data, built on a foundation of
data/institutional data well-documented and understood data definitions.
definitions
Anticipated Impacts:
Reduce conflicting and problematic reporting issues, such as
multiple ways to count full-time equivalents (FTEs).
Will require start-up and on-going training effort regarding
consistent use of data fields and changes in terminology as a result
of the new system.
Access to operational Enhanced access to uniform, well designed data by UW decision support
data staff will support quality reporting and analysis.
Anticipated Impact
Expanded catalog of reports and analysis tools, such as cubes16.
Access to uniform and well-defined data will make institution-wide
reporting and analysis easier to create and understand.
Significant start-up effort to build a catalog of reports and interfaces
using new data elements.
Integration across Legacy systems rely on multiple, older technologies, which make integration
systems across systems a difficult prospect. Implementation of modern technologies
and centralized systems will improve integration across HR/Payroll systems
and their interfacing systems.
Anticipated Impact:
Significant effort will be required for data mapping and integration
between the replacement Payroll and Time & Leave systems and the
existing finance systems; and between the replacement Payroll and
Time & Leave systems and the UW Medicine Health System.
Technology changes New systems will be written in programming languages that provide
adaptability, functionality, and flexibility.
Anticipated Impacts:
The IT staff may need to learn new technology skills, such as service-
oriented architecture.
Adhere to a standardized software development lifecycle will help
ensure quality.
16A cube is a data structure that facilitates fast analysis of aggregated data. For more information, see
http://msdn.microsoft.com/en-us/library/aa140038(v=office.10).aspx.
Flexibility to meet HR/Payroll requirements are in a constant state and increasing rate of
compliance change.
requirements
Anticipated Impacts:
Implementation of modern HR/Payroll system will increase our
ability to keep up with compliance requirements, while reducing the
cost of doing so.
System-related compliance risks will be transferred to the vendor in
the business models being considered.
Increased knowledge Automating several business processes will allow a shift of focus from data
focus, reduced data entry/processing work to knowledge focused work.
entry and processing
Anticipated Impacts:
work
Reduced need for entering the same data into multiple systems.
Routing workflows may increase workflow notifications.
A training effort will be required for central HR/Payroll staff,
Managers, and Payroll Coordinators as their work focus shifts from
data entry, auditing, and correction to maintaining quality business
processes, data quality, and up-to-date system functionality and
compliance.
7 Organizational Impacts
This section summarizes potential organizational impacts on the University of Washington, UW
Medicine, and affiliated agencies as a result of the proposed HR/Payroll system replacement project.
These anticipated organizational effects have been categorized as follows:
Changes in business processes – see Section 7.1
Job duties, roles, and responsibilities – see Section 7.2
Anticipated training needs – see Section 7.3
Anticipated change management needs – see Section 7.4
Impact on organizational structure – see Section 7.5
capture all of the roles and duties that will be needed in the future to support the complete set of
business processes. In some cases, the existing business processes are not automated. In other cases,
roles and duties aligned with existing are not systematically documented. Among the roles currently
involved in HR/Payroll are:
Employee (includes faculty, staff, student, courtesy appointments, and other employees)
Person (other than employee such as applicants for employment, etc.)
Managers
Payroll Coordinators
Unit staff who perform HR/Payroll activities
Central HR staff (including Compensation, Benefits Administration, Employee Relations, Labor
Relations, HRIS, Professional and Organizational Development, etc.)
Central Payroll staff
Departmental timekeepers and leave record-keepers
Central and departmental computing data analysts and report developers
Data consumers (external parties, such as Bargaining Units, who are dependent upon HR/Payroll
information)
Duties currently aligned with certain roles may be shifted as a result of modifying role definitions or the
nature of the new system functionality and workflow.
Stage 1 – Mandatory & Mission Critical Bidders will respond to mandatory and mission critical
Requirements: questions, certify compliance with UW's Negotiation
Procedures and provide other requested information
Stage 2 – Functional, Technical, and Bidders will respond to the Stage 2 questions, identify
Bidder Questions; Solution Components, requested solution components and respond to detailed
and Detailed Requirements: requirements. In addition, Bidders will respond to the
Key Business Terms Document.
Stage 4 – Finalist Bidders Follow-Up Bidders will be required to conduct follow-up solution
Demonstrations, Implementation demonstrations at the UW Seattle campus; submit
revised pricing, and participate in an Implementation
The goal of the procurement is to select a vendor and solution, and make a recommendation to the
Executive Sponsors and the Board of Regents. To further that goal, an evaluation approach has been
created in tandem with the RFP. The Project Team is working with representatives from Procurement
Services, the Attorney General’s Office, outside counsel, and an outside consultant to ensure that the
evaluation and procurement approach are robust, in line with industry best practices, and aligned with
the priorities established in the RFP.
When the contract is fully executed, UW will begin the first phase of the replacement effort. The first
major task will be a detailed fit-gap analysis in which the Project Team will assess the fit of the
University’s detailed requirements and desired future state business processes against the solution with
the goal of identifying any critical gaps that cannot be corrected. If a non-correctable gap is discovered,
the implementation may be halted.
Concurrent with the procurement stage will be a Business Process Redesign (BPR) project working under
a separate charter.
Reviewed the draft RFP from a legal perspective to identify potential issues prior to releasing the
RFP to the vendor community
Advised UW on contracting best practices and worked with UW to reframe portions of the
staged procurement to leverage best practices throughout the process
Drafted contract documents and a detailed statement of work which will be provided to the
bidders selected to move into Stage 3 of the procurement
Worked with UW to align the contract documents and the RFP
During the procurement, the external counsel will:
Review selected portions of vendor proposals, as requested, to advise the UW of potential
issues or concerns
Work the UW’s Attorney General’s Office, Procurement Services, and the Project Team to
conduct the implementation planning study and negotiate with the finalists
Staffing Acquiring Applicants – Process of tracking applicants through the stages of the
recruiting process. It includes, but is not limited to, accepting applications and
resumes for an opening or requisition, interviewing, and selecting and recording the
dispositioning of candidates. Acquiring applicants also includes screening and
completing background checks, such as visa, affirmative action, I9, SSN, W4, and so
forth.
Acquiring Requisitions – Process of creating, posting and maintaining job requisitions,
includes the processes to recruit employees and faculty, such as advertising, etc.
Reporting – Provides applicant flow and related affirmative action reporting, ad hoc
reporting, and data queries regarding recruiting and selection.
Onboarding – Process of hiring.
Separating – Process of ending an employee's appointment with UW for one of a
variety of reasons and/or sub-processes, including but not limited to, voluntary
resignation, retirement, layoff or reduction in force (RIF), or disciplinary dismissal. This
process includes the necessary steps required for ending an appointment, processes
for performing mass separations, and managing the unemployment insurance program
and responding to claims and appeals.
Compensation Compensating: Benchmarking – Process for matching internal job content to external
jobs of similar content. Used to design employer compensation packages,
benchmarking includes such activities as completing and conducting salary surveys;
comparing salary levels and job classification demographics using geographic data; and
determining appropriate salary rates or ranges for new positions and job offers to
ensure salary is competitive and commensurate with job duties. Monitoring and
developing new strategies for employee compensation are also parts of benchmarking.
Employee Performance Evaluation and Reviews – Process of consulting with managers regarding
Relations setting goals and coaching for improved employee performance. This includes storing
the performance record, tracking due dates for performance reviews and monitoring
the manager’s completion and employee’s receipt of the completed review.
Recognition – Process for an employee recognition program including tracking
employee eligibility, years of service, vendor relations, award inventory, options, and
selections by employees.
Corrective Action – Process of consulting with managers regarding performance issues
and recording and monitoring disciplinary actions consistent with the applicable
employment program.
Disability Accommodation – Processes for submitting, processing, and tracking
requests for accommodation services, advice and resources such as interpreter
services, disabled parking, or transportation requests, or facilities modifications.
Disability accommodation also includes arranging and documenting what
accommodations were provided such as job modifications, issuance of assistive
equipment, and so forth.
Health & Safety: Hazards – Process of tracking and reporting hazards.
Health & Safety: Incidents – Process for tracking and reporting incidents in the
workplace.
Health & Safety: Violence Prevention – Process of training, tracking, reporting, and
preventing workplace violence.
Health & Safety: Workers Compensation – Process of tracking workers’ compensation
incidents and claims, tracking an employee on workers’ compensation leave, and
integrating workers compensation leave with overall leave management.
Employee Communications – Process of informing employees about HR programs,
services, benefits, employment policies, and the organizational mission and goals.
Work History: Faculty Tsenure – Process of tracking faculty-related data, such as
tenure, tenure track, course evaluations, and promotion review and monitoring.
Work History: Data – Process of recording and storing all activities that affect faculty
and staff, such as personnel actions, salary adjustments, training, awards, honors, and
so forth.
Work History: Faculty Promotions – Process of monitoring for tenure-track and non-
tenure-track faculty.
Work History: Faculty Biography – Process of recording and storing faculty biographic
information.
Faculty Management – Process of recording and tracking faculty specific information
including – but not limited to – Faculty Senate activities, rank, student assessments,
Administering Contract Management – Process that supports labor contract proposal analysis,
Labor scenario building, and decision support for negotiations.
Relations
Rule Management – Process of maintaining and managing all article provisions related
to the full range of collective bargaining agreements.
Bargaining Unit Maintenance – Process of defining new and revised bargaining units
and assigning and tracking an employee's affiliation with a bargaining unit.
Grievance Administration – Process of recording and tracking grievances, including
stages and responses, by a variety of attributes, such as organization, issue, bargaining
unit and job classification. This business process also includes facilitating grievance
resolution, reporting, and analysis; and processes that support dispute resolution for
employment-related issues between bargaining unit employees and UW.
Labor Reporting – Process of regular reporting to unions and governance organizations,
e.g., PERC, regarding the composition and detail of bargaining unit membership. This
business process also includes ad hoc reporting and data query regarding bargaining
unit composition and activities for planning and development of labor relation
strategy.
Time and Time Collection and Leave Rules – Process of creating and maintaining work schedules,
Leave time rules, leave eligibility, leave accrual, leave usage rules, and leave schedules.
Timekeeping – Process of managing work schedules, recording and assigning time to
appropriate categories of work or leave, and approving and adjusting time.
Administering Leave – Process of managing the leave eligibility rules of various
Payroll Collect Payroll Activity – Process to collect all time, adjustment, employee deduction,
and employer contribution transactions that should be processed during the pay cycle.
Transactions may have been supplied via electronic feeds or input for processing.
Calculate Payroll – Processes to define pay periods and payment schedules and
calculate gross pay, employee deductions, employer contributions, and net pay by
uniformly applying one or more rule sets. Calculations must comply with all federal,
state, and local laws, and all collective bargaining agreement provisions.
Record Payroll Activity – Process to maintain accounting period balances for earnings,
employee deductions, employer contributions, hour and dollar balance adjustments,
and hours worked as defined by one or more rule sets. Keeps a record of all payment
activity for a single payment.
Remit Payment – Process for direct deposits, checks, vendor payment, off-cycle
payments, pay cards, and reprints.
Verify Payroll – Process of reviewing the aggregate earnings, deductions, and
contributions for reasonableness and completeness; and ensuring each current gross
payment meets the expected outcome for the payee.
Finance Interface – Process of sending encumbrance, accruals, salary and wage
expenditure, payroll deductions, and staff benefits expenditure from each payroll to
the financial system. This process provides an official financial record of salary and
wage encumbrances and related expenditures.
Labor Distribution – Process of entering and maintaining labor distribution data for
earnings. It also includes distributing all earnings, deductions, and taxes to the
appropriate funding sources.
Overpayment Processing – Process to collect money when employees are paid for
hours that they did not work or are paid at an incorrect rate.
Involuntary Deductions – Processes for defining types of garnishments, including
Appendix B: Glossary
The Glossary contains terms used in the Feasibility Study that may not be in the RFP Glossary.
Term Definition
Advantiv The Advantiv tool is a web-based collaboration platform that will be used for the
submission of proposal responses. In the context of Figure 4, it refers to a feature of
Advantiv that assists in the gathering of requirements.
Cloud computing Cloud computing is computing delivered as a service. Shared resources, software, and
information are provided over a network, typically the Internet.
Core solution A core HRP solution is one that provides these basic, integrated human
resources and payroll management features:
Position Management
Compensation Management
Benefits Administration
Payroll
Labor Distribution
Time and Leave
Appointee and Employee Records
Cube A cube is a data structure that allows fast analysis of aggregated data. For more
information, see http://msdn.microsoft.com/en-us/library/aa140038(v=office.10).aspx.
http://www.washington.edu/admin/hr/benefits/saving/medical/fsa.html.
Niche solution Specialized solutions that exist outside a core HRP solutions. Examples of niche
solutions are recruiting and application tracking systems, time and attendance
systems, and performance management systems.
The assessment ratings address three general areas – Cultural Readiness, Resource & Effort Awareness,
and Project Readiness, as shown in the next three figures.
Cheryl Cameron Vice Provost for Academic Personnel, Office of the Provost and Professor,
Dental Public Health Sciences, School of Dentistry
Stacey Fauchald Director, Academic & Medical Staff Appointments, Administration and
Finance
Doug Devine Analyst, Information & Data Management, Office of Planning & Budgeting
Brian Tyl HR Manager, Neurology & Psychiatry, and Behavioral Sciences, School of
Medicine
Cheryl Ewaldsen Assistant Director of Human Resources, Housing & Food Services, Student
Life
Heidi Tilghman Manager, Affiliate Assistant Professor, Humanities Shared Services Center
Germanics, Arts & Sciences
Kelly Campbell Director, Administration & Operations, Institute for Health Metrics and
Evaluation
Head
Year Vendor Product 3 yrs System Carnegie Public FTE count
University of Washington 1982 ISI Y N DR EXT Public 35,080 39,675
University of Oregon DR EXT Public 19,882 21,452
Florida International University 2006 ADP ADP N N DR EXT Public 28,413 38,759
Georgia State University 2009 ADP ADP N Y DR EXT Public 22,769 28,229
SunGard
Higher
Kent State University 2006 Banner Education N N DR EXT Public 19,907 22,944
SunGard
Higher
Auburn University 2006 BANNER Education N N DR EXT Public 22,097 24,530
SunGard
University of Illinois at Urbana- Higher
Champaign 2003 Banner SCT Education N Y DR EXT Public 40,812 43,246
Boston University 1978 GEAC Other Y N DR EXT Private 27,675 31,766
Iowa State University 1997 homegrown Homegrown N N DR EXT Public 24,620 26,856
Michigan State University 1980 homegrown Homegrown Y N DR EXT Public 42,847 46,510
University of Wisconsin-Madison 1989 homegrown Homegrown Y Y DR EXT Public 38,515 41,620
Washington State University 1986 homegrown Homegrown N N DR EXT Public 22,423 25,352
Louisiana State University 2010 Homegrown Homegrown N N DR EXT Public 26,970 28,810
Rutgers, The State University of
New Jersey 1972 Homegrown Homegrown Y N DR EXT Public 32,419 36,041
Texas A&M University 1979 Homegrown Homegrown N Y DR EXT Public 44,531 48,039
University of California, Davis 1970 Homegrown Y N DR EXT Public 29,558 30,568
University of Georgia 1981 Homegrown Homegrown N N DR EXT Public 31,324 34,180
Head
Year Vendor Product 3 yrs System Carnegie Public FTE count
University of Maryland 2001 Homegrown Homegrown N N DR EXT Public 33,211 37,000
University of Southern California 1985 Homegrown Homegrown Y N DR EXT Private 30,927 33,747
University of Texas at Austin 1988 Homegrown Homegrown N N DR EXT Public 47,047 49,984
Homegrown/
University of California, Irvine 2001 vendor More than one N N DR EXT Public 26,243 26,984
New York University 1996 Integral Integral Y N DR EXT Private 35,554 42,189
University of Pennsylvania 1988 Integral Integral Y N DR EXT Private 21,454 24,107
University of Washington 1982 ISI ISI Y N DR EXT Public 35,080 39,675
Colorado State University 2003 Oracle Oracle/Oracle N N DR EXT Public 24,439 28,882
Ohio University 2001 Oracle Oracle/Oracle N N DR EXT Public 19,907 21,369
University of Virginia 2002 Oracle Oracle/Oracle N Y DR EXT Public 21,981 24,541
West Virginia University 2000 Oracle Oracle/Oracle N N DR EXT Public 26,267 28,840
Oracle Oracle/People
Arizona State University 2007 PeopleSoft Soft N N DR EXT Public 56,770 67,082
Oracle
PeopleSoft
Human
Resource
Information Oracle/People
Kansas State University 1996 System Soft N N DR EXT Public 20,198 23,520
Oracle/Peopl Oracle/People
The Ohio State University 1997 eSoft Soft N Y DR EXT Public 48,518 53,715
Oracle/People
University of Kansas 1997 People Soft Soft Y N DR EXT Public 26,177 29,365
University at Buffalo 2005 PeopleAdmin Other N N DR EXT Public 25,269 28,192
Oracle/People
Harvard University 2002 PeopleSoft Soft N N DR EXT Private 21,825 26,496
Oracle/People
The University of Iowa 1999 PeopleSoft Soft N N DR EXT Public 25,438 29,152
University of Michigan-Ann Arbor 2001 PeopleSoft Oracle/People N Y DR EXT Public 39,195 41,028
Head
Year Vendor Product 3 yrs System Carnegie Public FTE count
Soft
Oracle/People
Indiana University 2002 PeopleSoft Soft N Y DR EXT Public 37,279 40,354
Oracle/People
North Carolina State University 2006 PeopleSoft Soft Y N DR EXT Public 28,251 32,872
Oracle/People
Northern Illinois University 2001 PeopleSoft Soft N N DR EXT Public 20,630 24,397
Oracle/People
The University of Arizona 2009 PeopleSoft Soft N N DR EXT Public 33,942 38,057
Oracle/People
University of California, Berkeley 2002 PeopleSoft Soft N N DR EXT Public 34,222 35,396
Oracle/People
University of Colorado at Boulder 2000 PeopleSoft Soft N Y DR EXT Public 28,735 32,469
Oracle/People
University of Delaware 2001 PeopleSoft Soft N N DR EXT Public 18,754 20,500
Oracle/People
University of Houston 2001 PeopleSoft Soft N Y DR EXT Public 29,069 36,104
Oracle/People
University of Minnesota 2000 PeopleSoft Soft N Y DR EXT Public 41,333 51,140
Oracle/People
University of Missouri 2002 PeopleSoft Soft N Y DR EXT Public 27,047 30,130
University of North Carolina at Oracle/People
Chapel Hill 2010 PeopleSoft Soft N N DR EXT Public 25,381 28,567
Oracle/People
Western Michigan University 1992 PeopleSoft Soft N Y DR EXT Public 20,643 24,818
PeopleSoft/O Oracle/People
Florida State University 2005 racle Soft N N DR EXT Public 34,265 38,682
University of Massachusetts PeopleSoft/O Oracle/People
Amherst 2002 racle Soft N Y DR EXT Public 22,823 26,359
PeopleSoft/O Oracle/People
University of North Texas 2003 racle Soft N Y DR EXT Public 27,667 34,830
University of Florida 2005 PeopleSoft; Oracle/People N N DR EXT Public 47,009 51,474
Head
Year Vendor Product 3 yrs System Carnegie Public FTE count
Soft
Purdue University 2007 SAP SAP N Y DR EXT Public 38,318 41,433
University of Cincinnati 2006 SAP SAP N N DR EXT Public 24,868 29,617
University of Kentucky 2006 SAP SAP N N DR EXT Public 23,935 26,054
University of Nebraska - Lincoln 1999 SAP SAP N N DR EXT Public 21,250 23,573
The University of Tennessee 2002 SAP N Y DR EXT Public 28,000 30,410
SunGard
Higher
University of New Mexico 2008 SCT Banner Education N N DR EXT Public 20,713 25,754
SunGard
Virginia Commonwealth Higher
University 2006 SCT Banner Education N N DR EXT Public 26,207 32,044
SunGard
Virginia Tech 1997 Banner N N DR EXT Public 28,606 30,739
SunGard
SunGard UDC Higher
Wayne State University 2002 Banner Education N N DR EXT Public 22,384 31,024
SunGard
SunGard HE Higher
University of Alabama 2006 Banner Education N N DR EXT Public 24,701 27,014
SunGard
Higher
Oklahoma State University 1999 SunGard SCT Education N Y DR EXT Public 19,280 22,995
The University of Texas at
Arlington 1996 UT Austin Other Y N DR EXT Public 19,182 25,084